U.S. inflation-indexed bonds are outperforming Treasuries this year, recovering from unprecedented losses in 2013, even as consumer prices have stayed in check through the sluggish U.S. economic recovery of the past five years.
Demand at the U.S. auction of $35 billion of five-year notes from a group that includes pension funds and insurers approached the highest level in almost a year amid speculation on the Federal Reserves agenda and turmoil in Ukraine.